MFS Declares Distributions for Closed-End Funds
MFS Investment Management® (MFS®) has announced monthly distributions for several of its closed-end funds. These distributions include declaration dates of March 3, 2025, ex-dividend dates of March 18, 2025, record dates of March 18, 2025, and payable dates of March 31, 2025.
Overview of Fund Distributions
Below is a summary of the funds and their respective distributions:
| Fund (Ticker) | Income/Share | Other Sources/Share* | Total Amount/Share |
|---|---|---|---|
| MFS® Charter Income Trust (NYSE: MCR)^ | $0.0000 | $0.045180 | $0.045180 |
| MFS® Government Markets Income Trust (NYSE: MGF)^ | $0.0000 | $0.019330 | $0.019330 |
| MFS® High Income Municipal Trust (NYSE: CXE) | $0.0160 | $0.0000 | $0.0160 |
| MFS® High Yield Municipal Trust (NYSE: CMU) | $0.01450 | $0.0000 | $0.01450 |
| MFS® Intermediate High Income Fund (NYSE: CIF)^ | $0.0000 | $0.014680 | $0.014680 |
| MFS® Intermediate Income Trust (NYSE: MIN)^ | $0.0000 | $0.019640 | $0.019640 |
| MFS® Investment Grade Municipal Trust (NYSE: CXH) | $0.02750 | $0.0000 | $0.02750 |
| MFS® Multimarket Income Trust (NYSE: MMT)^ | $0.0000 | $0.033690 | $0.033690 |
| MFS® Municipal Income Trust (NYSE: MFM) | $0.02150 | $0.0000 | $0.02150 |
Managed Distribution Plans
Several of the listed funds have adopted managed distribution plans. Under these plans, if sufficient investment income is unavailable on a monthly basis, funds will distribute long-term capital gains and/or return of capital to maintain a consistent distribution level.
Investors should note that the distribution amounts do not necessarily indicate the funds’ investment performance. Managed distribution plans are subject to periodic review by the fund’s Board, which holds the authority to amend or terminate the plan without prior notice. Such changes could impact the market price of the fund’s common shares.
Each distribution that does not solely consist of net investment income will be accompanied by a shareholder notice and a press release with detailed information about the distribution’s composition. These figures are estimates and should not be considered final for tax reporting. Actual amounts will be determined at the end of the fund’s fiscal year and may change based on tax regulations. Investors will receive a Form 1099-DIV for tax reporting.
Potential Impact of Returns of Capital
There are times when a fund may distribute more than its net investment income and realized capital gains, leading to a return of capital. A return of capital may reflect the return of shareholders’ original investment rather than fund performance. It is important to distinguish returns of capital from yield or income.
A return of capital can impact the fund’s total assets, potentially increasing its expense ratio. Additionally, maintaining a specific distribution level may require the fund to sell portfolio securities at less favorable times. Shareholders should review the most recent dividend source information for further details.
Tax Considerations
Distributions categorized as “Other Sources” may include various income sources, such as short-term capital gains, long-term capital gains, or return of capital. The final breakdown will only be available at the end of the fund’s fiscal year. If a distribution is considered a return of capital for federal tax purposes, it will reduce an investor’s tax basis in their shares. If the distribution exceeds the adjusted tax basis, it will be treated as a capital gain from the sale of shares.
MFS Investment Management continues to provide monthly distributions for its closed-end funds, supporting income-oriented investors. While these distributions offer financial benefits, investors should remain informed about the nature and potential implications of these payments. Regularly reviewing fund performance, tax considerations, and managed distribution plans will help investors make sound financial decisions regarding their investments in closed-end funds.
About MFS Investment Management
In 1924, MFS launched the first US open-end mutual fund, opening the door to the markets for millions of everyday investors. Today, as a full-service global investment manager serving financial advisors, intermediaries and institutional clients, MFS still serves a single purpose: to create long-term value for clients by allocating capital responsibly. That takes our powerful investment approach combining collective expertise, thoughtful risk management and long-term discipline. Supported by our culture of shared values and collaboration, our teams of diverse thinkers actively debate ideas and assess material risks to uncover what we believe are the best investment opportunities in the market. As of January 31, 2025, MFS manages US $623.7 billion in assets on behalf of individual and institutional investors worldwide.
